No DSS bans 'Ruled' Unlawful by Court

As many of you will be aware Shelter have been encouraging DSS (DWP) applicants to challenge agents for some time.  There was an out of court settlement made to an applicant in 2018. 

As a consequence, as often happens, a case was brought before York County Court on 1 July involving a letting agent who had a blanket ban on DSS applicants.  District Judge Victoria Mark ruled: "Rejecting tenancy applications because the applicant is in receipt of housing benefit was unlawfully indirectly discriminatory on the grounds of sex and disability contrary to Sections 19 and 29 of the Equality Act 2010”.

The case concerned a disabled single mother of two children.  This was deemed to be indirect discrimination. The ruling of indirect discrimination is due to the fact that women and those with disabilities are disproportionately more likely to be in receipt of housing benefit, and therefore disproportionately affected by blanket "No DSS" bans.

Responding to the ruling, Chris Norris, policy director at the National Residential Landlords Association, said: "No landlord should discriminate against tenants because they are in receipt of benefits.

"Every tenant's circumstance is different and so they should be treated on a case by case basses based on their ability to sustain the tenancy."

But he added that the government could support tenants by ensuring benefits covered rents entirely.

It is not known whether there will be an appeal.  Agents should always have avoided having a blanket ban for DSS applicants as indeed the defendant in this case now does.  This ruling makes it clear that it is unlawful to ban applicants solely on the basis that they are in receipt of Housing Benefit as it would contravene the Equality Act 2010.  Interestingly this applicant was able to provide a guarantor. 

Not surprisingly landlords are in uproar.  Firstly few agents impose a blanket ban and instead refer to the landlord’s stipulations. Secondly lenders and insurance companies rarely allowed for DSS tenants although this is fast changing due to pressure. Thirdly there is the issue with clawback and DSS being paid 4 weekly in arrears whereas the rent is due monthly in advance.  A deposit (bond) can also be an issue with DSS applicants.   Accepting applicants who are on DSS doesn’t get away from the fact that the landlord requires a deposit and that rent is payable monthly in advance. 

This matter is clearly not over yet and many landlords think it is just headline grabbing for Shelter and may not actually change things.  That said, Landlords and agents who continue to refuse to rent to housing benefit claimants face the risk of legal action.